PIA commits to paying Rs1.35b to PSO | The Express Tribune
[ad_1]
Pakistan International Airlines (PIA) has reaffirmed its commitment to Pakistan State Oil (PSO) by pledging to pay Rs1.35 billion for fuel supplies, which has enabled PSO to extend a credit facility of Rs500 million to facilitate PIA’s ongoing operations. Facing financial constraints and amid PIA’s default on payments, PSO has taken a pragmatic step to ensure that the national carrier continues its essential operations by increasing its credit limit for fuel supply from Rs15 billion to Rs15.5 billion, said sources. Sources familiar with the matter revealed to The Express Tribune that PIA had been making timely payments to international airports but had fallen behind on dues to PSO, leading to a concerning fuel supply crisis. As per a prior agreement between PSO and PIA, a credit facility of Rs15 billion had already been exhausted by the airline. To address the situation, both parties reached an agreement on October 16, stipulating that PIA would make daily payments of Rs